In order to have a clear understanding of the impact of monetary policy on commercial banks, it is important to highlight what monetary policy is all about.
The term monetary policy is defined as the credit control measures adopted by Central Banks to control the supply of money as an instrument for achieving the objectives of general economic policy. It involves expansions and contraction of money supply, the manipulation of interest rate to make borrowing easier or more difficult depending on the prevailing condition of economy. Expansionary measure is adopted when the central bank want to increase money supply.
Generally the objectives of monetary policy includes maintenance of balance of payment, economic grow, provision of employment and price stability.
In order to actualize the above objective, the government found out that they could use only commercial banks. This is due to the nature of their services.
Moreover, commercial banks in pursuance of their profit motive are inclined to channeling funds to the most profitable sector of the economy rather than the sectors preferred by the government the tendency of this however is that the overall interest of the nation will be jeopardized.
Thus in order to avoid this the central monetary authority (CBN) had to institute machineries and instrument to ensure the strict observance and adherence of commercial banks towards monetary policy.
However the introduction of these instruments affect the profit making of commercial banks as they are not given free hand to channel their funds to the most profitable sector.
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CHAPTER ONE <>1.1BACKGROUND OF THE STUDY Monetary policy remain a critical tool in stimulating the growth and stability of financial Institution in most developing Economics. In Nigeria, the objectives usually include promoting monetary stability,... Continue Reading
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ABSTRACT The research project examines the impact of monetary policy on commercial Banks Loan and Advances in Nigeria, using a annual time series from 1980-2006. In order to study if thoroughly monetary policy affects commercial banks loans and Advances in Nigeria. The research work made use of both descriptive and econometric approach. The... Continue Reading
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INTRODUCTION 1.1 STATEMENT OF THE PROBLEM The impact of monetary banks in Nigeria economy. The term monetary policy can be defined as the combination of measures designed to regulate the supply of money in an economy. It is specifically designed to regulate the availability of credit in order to attain staffed objectives. It involves the expansion... Continue Reading
THE ) ABSTRACT The economic policies or interpretation of such policies has always left a key question unanswered, how much authorities do such policies allow the banks to use their powers to lend, to made remarkable impact in the overall economic situation in... Continue Reading
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THE IMPACT OF MONETARY POLICIES ON NIGERIA COMMERCIAL BANK (A CASE STUDY OF ZENITH BANK P.L.C) ABSTRACT The economic policies or interpretation of such policies has always left a key question unanswered, how much authorities do such policies allow the banks to use their powers to lend, to made remarkable impact in the overall economic... Continue Reading
CHAPTER ONE 1.0. INTRODUCTION Monetary policy of the central bank of Nigeria are betterdelivered as full package since fiscal and monetary policies areextricable, except in terms of the instruments and more potent incorrection short term macroeconomic maladjustment because ofthe frequency in applying and altering the policy fools relativeease of... Continue Reading